Chainlink hits yearly high: How did World Liberty Financial help LINK rally?

  • Trump-backed World Liberty Financial bought LINK worth $1M.
  • The bid triggered LINK to front a new yearly high of $29.

As a seasoned crypto investor with a knack for spotting trends and a penchant for DeFi projects, the recent move by World Liberty Financial (WLF) to buy LINK has piqued my interest. Having closely followed the crypto market since its inception, I can’t help but see parallels between this move and the infamous “Trump Rally” of the stock market during his presidency.

On December 12th, the price of Chainlink [LINK] surged by more than 23%, after it was announced that World Liberty Financial (WLF) purchased over a million dollars worth of LINK.

The altcoin jumped from $23 to $29 but has since eased slightly to $27 at press time.

As reported by the blockchain analysis company, SpotOnChain, it is said that the decentralized finance (DeFi) platform endorsed by Donald Trump has acquired both AAVE and ETH tokens as well.

WLF wallets now hold over $64M, dominated mainly by DeFi tokens. 

Community reactions

In response to the recent development, Zach Rynes, Chainlink’s community representative, emphasized that this action signifies Web3 Foundation’s trust in LINK. In simpler terms, he expressed that the foundation is confident in LINK.

Trump’s Decentralized Finance (DeFi) initiative has been purchasing large amounts of LINK tokens, amassing approximately 41,335 LINK, which is equivalent to $1 million. This move comes after World Liberty declared last month that they will be integrating Chainlink services, starting with their Price Feeds system.

Another market analyst, Horse, claimed that whatever WLF bids might signal projects that could benefit from Trump’s policy plans. He noted, 

“Trump’s account is buying the crypto pairs that are set to benefit heavily from his plans.” 

Over the specified timeframe, WLF invested $10 million into Ethereum (ETH) and another $1 million into Aave (AAVE). For those not acquainted, WLF has teamed up with Aave v2, a popular lending and borrowing platform within the Decentralized Finance (DeFi) sector.

There’s a general sense of enthusiasm towards President Trump’s proposed cryptocurrency initiatives, particularly following his recent pro-cryptocurrency decisions. However, it’s still uncertain if the Decentralized Finance (DeFi) sector stands to gain the most from these developments.

That said, what’s LINK’s price outlook in the short term? 

LINK cools off

As a researcher, I’ve observed that the stock price of LINK has been steadily declining and is currently trading below its annual peak at $26. However, the recent WLF update seems to have sparked a significant rise, pushing the price to a fresh yearly high of $29.

Nevertheless, the rally led to profit-taking since the altcoin dipped towards $26. If this level is revisited as a potential support, it would suggest a continuation of LINK’s upward trend. In such a case, possible future highs could be $30 and $35.

But a breach below $26 could drag LINK to $23 or the trendline support. 

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2024-12-13 00:07